The re-sale value of a leasehold property in Blaby depends on how many years the lease has remaining. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be addressed in advance of the eighty year cut off point. Leasehold Reform legislation entitles Blaby qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Blaby with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with handle Blaby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leo owned a high value flat in Blaby being marketed with a lease of just over fifty eight years outstanding. Leo on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last February we were phoned by Ms Molly Stewart , who took over the lease of a garden flat in Blaby in November 2002. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar properties in Blaby with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 invoiced per annum. The lease ended in 2102. Given that there were 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2011 we were called by Dr S Dupont who, having was assigned a lease of a purpose-built apartment in Blaby in May 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Identical premises in Blaby with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed quarterly. The lease elapsed in 2082. Taking into account 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of fees.